Location: Santa Fe, NM | Metro: Santa Fe, NM MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,380 |
| 1 Bedroom | $1,540 |
| 2 Bedrooms | $1,900 |
| 3 Bedrooms | $2,330 |
| 4 Bedrooms | $2,490 |
| 5 Bedrooms | $2,888 |
| 6 Bedrooms | $3,235 |
| 7 Bedrooms | $3,494 |
| 8 Bedrooms | $3,669 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,900 | $646,418 | 0.29% | F |
| 3BR | $2,330 | $869,363 | 0.27% | F |
| 4BR | $2,490 | $1,044,915 | 0.24% | F |
U.S. Census Bureau data (2024)
ZIP code 87540, located in Lamy, NM, is part of the Santa Fe, NM Metropolitan Statistical Area (MSA). To understand its position within the broader market, we can compare its Fair Market Rent (FMR) of $1900, market rent of $1,039, home value of $833,997, and 40.2% renter share against typical metrics for ZIP codes within the Santa Fe MSA.
The FMR of $1900 for ZIP 87540 is notably higher than its actual market rent of $1,039. This suggests that while the government sets a higher threshold for rental assistance, the local rental market may be less expensive, potentially creating an opportunity for landlords participating in the Section 8 program. The disparity between FMR and market rent could indicate that this area is somewhat undervalued in terms of rental pricing compared to what the government considers fair.
The home value of $833,997 is above average for many ZIP codes within the Santa Fe MSA. This figure places 87540 in a premium sub-market segment, suggesting that homeownership here commands a significant price point. However, the relatively low market rent of $1,039 indicates that renting is less costly compared to owning property, which could influence investment decisions for those looking to manage rental properties.
A 40.2% renter share is higher than the national average, indicating a substantial portion of the population in ZIP 87540 relies on rental housing. This statistic, combined with the lower market rent, might suggest that there is a strong demand for affordable rentals. For landlords, this could mean that there is a steady pool of potential tenants who qualify for rental assistance programs such as Section 8.
Overall, ZIP 87540 appears to be a mixed-value neighborhood within the Santa Fe MSA. While it offers opportunities for landlords due to the higher FMR and significant renter share, the premium home values might limit its attractiveness purely as a value pocket for all types of real estate investments. The divergence between high renter share and above-average home values signals a potential sweet spot for Section 8 landlords and small-portfolio investors seeking a balance between affordability and property value.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.